Best-in-Class Point-Of-Sale Strategies and Implementations

Best-in-Class
Point-Of-Sale Strategies
and Implementations
SAP Retail Leadership Forum
Colin Haig, Industry Principal, SAP Retail
Peter Gerhardt, Chief Financial Officer, Town Shoes Limited
Glenn Wood, Director of Information Services, The Beer Store
2007-10-23

The Economist survey:
Understand, anticipate and inspire
SAP teamed up with The Economist intelligence unit
and produced a three part research series called
Intelligent Merchandising:
Creating a Unique Shopping Experience
Each of the reports highlights survey data on:
• Understanding the Customer
• Anticipating the Customer
• Inspiring the Customer
The survey found Point-of-Sale was key to best-inclass
customer shopping experiences and effective
retail operations.
Let’s meet two retailers that are very focused on
understanding their customers and are delivering
inspiring results…
Source: Economist
Note: Several charts in this presentation with a “Source: Economist” refer to the three part report.
© SAP 2007 / Page 2

Glenn Wood – Director of IS - is brewing
inspiration and success at The Beer Store
Today, The Beer Store is a private
company owned by three Ontario
brewers: Labatt, Molson and
Sleeman.
• The Beer Store management
maintains a close working
relationship with the Government of
Ontario through the Alcohol and
Gaming Commission of Ontario
(AGCO).
436 Retail Stores, 6 Distribution Centre’s, 113 Retail Partners
Approximately 90% of Retail and Beer Distribution in Ontario.
300 Brands, 70+ Brewers from around the world. 700+ active SKU’s.
Environmental Leadership. Recycle over 99% bottles and 83% cans
Responsible Sales. Approximately 5 million challenges per year.
The Beer Store was created in
1927 by a group of brewers
working with the Government of
Ontario to create a responsible
system for beer distribution.
© SAP 2007 / Page 3

Peter Gerhardt – Town Shoes – Successful
steps to understanding its customers
Town Shoes is a nationwide
footwear, handbag and
accessory retailer,
headquartered in Toronto.
Two distinct formats:
• a large big box brand called
“The Shoe Company” that
offers brand-name shoes at up
to 50% for the whole family, at
over 60 locations
• more intimate, higher-end
“Town Shoes” with 33 specialty
stores including a Flagship
store on Toronto’s fashionable
Bloor Street.
© SAP 2007 / Page 4

How many pairs of shoes do you own?
The average woman owns
25 pairs of shoes*
The average man owns 7
pairs of shoes*
* United Press International
© SAP 2007 / Page 5

There’s no such thing as average!
Imelda Marcos received
quite a bit of fame with
her 1,200 pairs of shoes
Celine Dion boasts a
mere 500 pair of shoes
© SAP 2007 / Page 6

Town Shoes – Not your average retailer!
Unique Business
Challenge
• Lack of visibility to inventory
• High customer churn
• Error-prone manual processes
• Need to identify fraud and eliminate shrink
• Small size IT team needed unique help
With only 1500 employees
and just under 100 locations,
the store systems use:
• SAP’s Application Managed
Services for centralized
applications such as Loss
Prevention, EFT, and Loyalty
• SAP Point-of-Sale in-store
© SAP 2007 / Page 7

The Beer Store Challenge – Understanding the
Customer, anticipating their demand
Unique Business
Model
Renewal
Program
Objectives
• Fixed Pricing by customer type
• Corporate governance model
• Customer focus, POS throughput
• Multiple store formats
• Perishable Product with a 35 day
manufacturing cycle
• Support Innovation
• Business Process Re-engineering
• Access to Information
• Staged renewal
• Retire hardware; End decentralized data
Achieved with
Enterprise SOA
and Industry
Standards
• Messaging via JMS; using ARTS XML
• Heterogeneous environment: SAP, 3 rd party,
and own Legacy and New applications
• SAP Enterprise POS w/ ARTS JavaPOS
• A few clicks to deploy the technology
© SAP 2007 / Page 8

Discussion Topics
What does a best in class implementation look like?
What did you do to ensure the system would be a success?
Were there particular steps to ensure that the project accomplished the
objectives ?
Each of you went through some challenges. Can you share them? And how
you addressed them?
• some internal
• some vendor
• pioneering
• some lessons learned and recommendations ?
© SAP 2007 / Page 9

The Economist: How best to gain Understanding of
the Customer
Key Observations:
• Capturing the data has to happen at POS
and other channels
• Timely consolidation of data is an issue
• “Analysts” are in multiple job roles
• Marketing
• Merchants (Price, Promo, Product)
• Loss Prevention / Asset Protection
• Store sales operations
How does Town Shoes loyalty
work? How are you refining it?
How does Beer Store perceive
its customers?
Source: Economist
Conclusions:
• POS solutions need to be flexible
• Centralized solutions for Loss Prevention
and Loyalty are key
• Analytics to support KPIs are important
• Near – realtime information is empowering
© SAP 2007 / Page 10

The Economist: How retailers are Inspiring the
Customer
Observations:
• Inspire the Customer by focusing
on knowing your clients
• Smarter merchandising
• Empowered staff at HQ and
stores
Source: Economist
Can you explain how Town Shoes is using POS
as a portal to get to merchandise ?
How has POS tied in to The Beer Store’s
environment ?
Conclusions:
• Operational Systems like POS
when combined with loyalty
solutions can be enablers to
gather customer data, and inspire
them with targeted offers
• Customer satisfaction is driven
by empowering staff, to enable
operational efficiencies,
accelerate performance, deliver
better promo execution.
© SAP 2007 / Page 11

Concluding Remarks
Retailers of all sizes and complexity are seeing real benefits, and there are
challenges getting there.
Business Process, People, and Technology need to come together.
Best-in-Class Retailers use SAP Store Platform to help:
•Understand by using a Single Version of the Truth
•Anticipate Customer Demand for Competitive Advantage
•Inspire the Shopping Experience
UNDERSTAND.
ANTICIPATE.
INSPIRE.
© SAP 2007 / Page 12

Cheers & Thank you!
To learn more, please see:
• Business Transformation Studies
• The Economist Intelligent Merchandising
Contact the team at SAP for more information!
© SAP 2007 / Page 13

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